If a Stock Pays Dividends at the End of Each

question 91

Multiple Choice

If a stock pays dividends at the end of each quarter, with realized returns of R1, R2, R3, and R4 each quarter, then the annual realized return is calculated as ________.

• A) Rannual = (1 + R1) (1 + R2) (1 + R3)( 1 + R4) - 1
• B) Rannual = R1 + R2 + R3 + R4
• C) Rannual = (1 + R1) (1 + R2)( 1 + R3)( 1 + R4)
• D) Rannual =

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